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Southbound journey continues on Asian region; weak US, China data disappoints

01 Jun 2012 Evaluate

Sentiments continued to remain bearish in the Asian region for third day in a row on Friday amid deepening debt worries in Europe, while disappointing US data and Chinese manufacturing data too dampened the sentiments. Overnight, the US government lowered its estimate for first-quarter economic growth, to 1.9 percent from 2.2 percent following two jobs reports -- weekly unemployment claims and private-sector job creation in May -- both were disappointing, indicating slow improvement in the economy. Adding fuel to the fire, manufacturing activity in China grew at a much slower rate than expected in May. The official purchasing managers index (PMI) fell to 50.4 from 53.3 in April.

Meanwhile, Japanese Nikkei average crumbled over a percentage point and South Korean KOSPI Composite also eased half a percent after disappointing Chinese and US data; moreover, fears about the deepening euro zone debt crisis too weighed the sentiments. While, Hong Kong shares edged lower on Friday, rounding off four successive weeks of losses, as disappointing manufacturing data from China weighed on most cyclical sectors such as materials and mining companies and counterbalanced gains in financials led by buying at lower levels.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,373.44

1.20

0.05

Hang Seng

18,558.34

-71.18

-0.38

Jakarta Composite

3,799.77

-33.06

-0.86

KLSE Composite

1,573.59

-7.08

-0.45

Nikkei 225

8,440.25

-102.48

-1.20

Straits Times

2,745.71

-26.83

-0.97

KOSPI Composite

1,834.51

-8.96

-0.49

Taiwan Weighted

7,106.09

-195.41

-2.68

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